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Socioeconomic factors influencing companies' siting in pollution havens from an environmental justice perspective in the context of South Korea

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  • Lee, Chang Hwan
  • Shim, Jae Hyeok
  • Ban, Yong Un

Abstract

In South Korea, where industrialization and urban growth have unfolded in tandem, a distinctive form of Environmental Injustice (EIJ) has emerged. However, the Pollution Haven Hypothesis (PHH), which can be understood as one manifestation of EIJ, has been discussed primarily from an economic-geographic perspective rather than through the lens of Environmental Justice (EJ). This study reinterprets PHH from an EJ perspective and examines how Korea-specific forms of EIJ differ from conventional EJ narratives. Using nationwide factory registry data and a zero-truncated negative binomial (ZTNB) regression model, the analysis reveals a dual structure consisting of a “privileged exposure paradox,” in which some risks remain in high-land-value capital and core hub regions, and the externalization of more severe risks to non-urban peripheral areas. These findings suggest that, in South Korea's state-led hub-centered growth process, Porter-type agglomeration mechanisms and PHH-type externalization mechanisms operate simultaneously. They also show that EIJ can no longer be explained solely as a concentrated burden on socioeconomically vulnerable groups, but must be understood as a more complex structure that also includes residual pollution exposure in relatively affluent areas.

Suggested Citation

  • Lee, Chang Hwan & Shim, Jae Hyeok & Ban, Yong Un, 2026. "Socioeconomic factors influencing companies' siting in pollution havens from an environmental justice perspective in the context of South Korea," Ecological Economics, Elsevier, vol. 247(C).
  • Handle: RePEc:eee:ecolec:v:247:y:2026:i:c:s0921800926001254
    DOI: 10.1016/j.ecolecon.2026.109040
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